STRATFORD~UPON-AVON TOWN TRUST Annual Report and Accounts 2023 Stratford Town Trust creating a vibrant and connected eommunity Registered Charity No. 1088521 Registered Company No. 04222949 {A Company Limited by Guarantee) CONTENTS Page Joint Message from our Chair of the Board and Chief Executive Trustees, Report Report of the Trustees Officers, Contacts and Advisers 3-17 18 Statement of Trustees, Responsibilities 19 Independent Auditors, Report 20- 22 Flnancial Ststements 23-27 Notes to the Flnancial Statements 28-46 Definitions Stratford-upon-Avon Town Trust "the Town Trusv, College Estate Endowment "the College Estate" Gulld Estate Endowment "tho Guild Estate" The Board of Trustees "the Board" STRATFORD-UPON-AVON TOWN TRUST JOINT MESSAGE FROM OUR CHAIR OF THE BOARD AND CHIEF EXECUTIVE Despite the continuing economic challenges, our Report and Accounts for 2023 show a year of pleasing growth in income and well-controlled costs allowing. as a consequence, an increase in available grant giving funds. It is encouraging that, despite the continued challenges presented to us. not least by the rise in the cost of living and global economic uncertainty, there seems to be a retuming economic confidence within the town. Our total income in 2023 was £3.7m compared with £3.6m in 2022 with a robust performance from investments, income derived from commercial property rents and from the use of our two car parks. In a climate where high streets across the UK continue to report a high level of empty shops, we are pleased that, during the year, we have had a relatively small number of void properties and minimal rent arrears indicating a confidence in, and willingness to. support the Stratford town centre businesses. We were also grateful to re￿1ve funding of £25k from the UK Shared Prosperity Fund enabling us to develop a programme of community engagement and volunteer activity for Stratford upon Avon Local Nature Reserve. In December 2023 we completed an agreement with Warwickshire County Councll which secured fundlng of £443k through the govemment's Biodiversity Net Gain programme for the long-term management and nature conservation at Rowley Fields. This funding will enable the creation of a wildflower meadow as well as hedgerow and grassland management over a thirty-year period. Across the year we awarded grants lo 155 local groups chariiies and individuals to the value of £1.2 million. We were delighted to receive applications from groups that are new to us. and there was an increase on last year in both number of people supported and the monetary value. This included funding to support the rnove from Foundation House to our new Communlty Hub home at Venture House, Avenue Farm Industrial Estate. Our temporary home, made available to us by Stratford District Councll, is smaller than Foundatlon House but has a lower overhead cost which means we will have more grant funding available for others. Over the second half of the year activity at our new Community Hub gathered momentum, and we were delighted to see lots of charities and voluntary groups enjoying the space. A stand out example is our weekly warm hub that continued throughout the year proving vital support to so many in combating loneliness and providing practical support. The Town Trust has been funding and operating a Community Hub in the town since 2018 which means that we understand first-hand the value a facility like this brings to the local community. The search continues for a pemianent home. Our discretionary grants for the year were focussed towards providing support for core costs. As a grant maker we understand the value of funding the everyday for charitles living 'hand to mouth" This had the option to include things like a conlribution to overall running costs of an organisation, rental and transport costs, volunteer expenses and energy cost contribution. Whllst individually these may not sound exciting, they are all essential elements of an organisation's work and without them, a group cannot deliver its mission. We continue to find ways to make our grant application process as accessible as posslble to the widest number of groups. We are thrilled that 380/0 of our discretionary funding went to support young people through our funding to all the local schools and projects such as the Stratford Youth Collective. This new approach to funding known as Participatory Grant Making brought together five local charities who work exclusively with young people in move towards ensuring that those impacted by our funding are making the decisions about how it is spent. In the case of Slfatford Youth Collective this meant securing a dedicated youth hub in the centre of town supporting young people between the ages of 8 - 18 years. Over ihe year we quadrupled the number of volunteers working with the Town Trust on a range of projects from our guides at the Guild Chapel to our monthly Repair Café learn. Together they have contributed an astonishing 967 hours of their time, equivalent to £11,500. As part of our non-di5cretionary commitments, the entitlement to KES trustees from the Guild Estate was £727k (2022 £586k), the Church Street Alms-houses received £55k (2022 £49k) and a stipend to Holy Trinity Church of £7k (2022 £7k) was paid. STRATFORD-UPON-AVON TOWN TRUST JOINT MESSAGE FROM OUR CHAIR OF THE BOARD AND CHIEF EXECUTIVE As ever, our costs have been closely controlled through continual careful management of the organisation by our senior managemenl leam. As a result, we were able to close the year with a cost base of £O.g million (2022.. £1.3 million) a decrease on the previous year where we had some exceptional costs related to the propety portfolio. Our small team, of staff and eleven trustees. continue to go over and above to deliver our mission to maximise our assels and work in partnership for Ihe benefit of the people of Slrafford upon Avon. During the year we welcomed Mark Tailby who joined us as a co-opted trustee when Clive Snowdon retired having completed two full lerms. Also, we welcomed David Lane who joined us as a non*xecutive member of the Audit and Governance Committee. Finally, we must acknowledge the hard work of Tony Jackson who seNed as Chair for two years. The Town Trust is rather unique in that it was set up as a membership charity and our members are a valuable touchstone, offering support and challenge in our planning, and playing an active part in creating a vibrant and connected community. As ever, we would encourage all Stratford residents to Joln us as a way to get involved In our work. Joining is easy at www.stratfordtowntrusl.co.ukl.oinu Please do loin us at Our AGM whlch wlll be held In the Play House on Wednesday 11 September 2024. Sara Aspley Chief Executive Tim Bailey Chairman 22 May 2024 STRATFORD-UPON-AVON TOWN TRUST REPORT OF THE TRUSTEES The frustees present their annual report and financial statements of the Town Trust for the year ended 31 December 2023. The financial statements have been prepared In accordance with the accounting policies set out in note I to the accounts and comply wlth the Town Trust's governing documents. the Charltles Act 2011, the Companles Act 2006. and tha Statement of Recommended Practice.. A¢￿untIng and Reports"ng by Charities published in 2015. The Strafford-upon-Avon Town Trust (the Town Trust) is the corporate Trustee of the Guild Estate Endowment Charity (the Guild Estate) and the College Estate Endowment Charity (the College Estate) (referred to as "the Group.). Principal Activities The principal activity of the Town Trust is the giving of grants, discretionary and non-discretionary, to organisational beneficiaries that are based in Slratford-upon-Avon, working for the benefit of town residents. This is facilitated by the careful management of the investrnent portfolios held by the Guild Estste and the College Eslate. The Town Trust endeavours to maximise the return on all classes of investments. in order that the grant-making programme can continue to provide a reliable sourGe offunds. However, there Is also an element of present value Versus long temi strategic value In terms of asset management and value oplimisation. The Town Trust, with a history dating back more than 500 years. takes a very long-term view on income generailon. Objects The Town Trusl's Objects are to be applied for the benefit of those living in the town of Strattord-upon-Avon; and are as set out in the Memorandum and Articl85 of Association (those studying or working in the town may also benefit incidentally): to relleve need, hardship and distress among beneficiaries,. to relieve sicknes5, disability, old age and infirmity among beneficiaries. to provide or support the provision of facilities for education of beneficiaries, including the advancement of learning and knowledge: to provide or support {with the object of improving the conditions of life for beneficiaries in the interests of soclal welfare) facilities for recreation and other leisure-time occupation; to advance the Christlan religion for the benefil of beneficiaries., and to further any other charitable purposes for the general benefit of the beneficiaries. Climate Change and the Environment The Town Trust is very conscious of the impact of cllmate change and the need lo achieve environmental sustainability. Together wth local slakeholders including Stratford-on-Avon District Council, Stratford-upon-Avon Town Council. businesses, and local environmental groups, we are working to achieve carbon neutral targets. The work of the Town Trust as set out in the Charity Commlsslon Scheme Is confined to the parish of Strafford upon Avon and as such our carbon footprint Is small. The organisabon has only 14 members of staff, 80°k ofwhom live within a ten-mile radius of the town. Ourwork is best described as hyper local which means there Is Ilttle or no need for national or international travel. We do nol own or lease eny organisational vehicles, nor do we manufacture or purchase consumables. Through our green spaces. Rowley Fields Town Green and Stratford upon Avon Local Nature Reserve we are committed to improve biodiversity, one of our planet's most precious assets. However, we recognise that even small organisations have a responsibility to embrace the goal to be carbon neutral and our focus is on limiting waste and our use of energy and water. Many of the buildings within our commercial portFolio a￿ listed or were built in an era where insulation was not factored into their construction Nevertheless, we work hard to make changes that will have a positive impact on their Energy Performance Certificate rating5. Separalely we have introduced waste stream separation at our Community Hub and administrative office with our chosen contractor using non-recyclable waste as an energy source. Our monthly Repair Café in partnership with local group Net Zero has a high success rate in repairlng items that would have been destined for waste. In 2023 our volunteer repairers tsckled 815 items with an impressive 77% success rate. Thi5 equates to 2.6 tonnes saved from landfill and 15.8 tonnes in carbon savings. Rowley Fields, a Town Green and protected in perpetuity, now has a thirty-year management plan initlated to improve the biodiversity of this impoverished grassland under the Bio-Diversity Net Gain Funding Scheme. This agreement was signed in December 2023, with work to start in summer 2024. STRATFORD-UPON-AVON TOWN TRUST REPORT OF THE TRUSTEES Climate Change and the Environment (Contnued) The Lench Meadows, part of the Riverside Project, a joint Initiative with Stratford District Council secured Local Nature Reserve status in September 2023. With its close proximity to town centre public transport and easily accessible on foot or by blcycle the Stratford upon Avon Local Nature Reserve (LNR) is a demonstration of the Town Trust's long term commitment to improving biodiversity and access to nature for all. strategic Plan 2021- 2025 We launched our current strategic plan in November 2020 following community consultation with residents of Strafford. Almost 1,500 people took part in the consultation and g1 O/a of respondents told us that Slrarford was a good place to live,. whilst 80 % said the Town Trust was important to them and the town. Our members told us that they valued our work and wanted more opportunities to connect with one another in support of the community. The strategy focuses on four pSllars of activity: grant making. communlty engagement, place making, and finance and investments. The strategyfor 2021-2025 was strengthened by a revlewof, and recommendatlons for. the Town Trust's endowed property estate by an independent third party. Having a clear and robust Financial Investment Pollcy has enabled the Board to make sound, strateglcally led decisions and we will continue to work in thi5 way through to 2025. Our Grant Making Strategy has evolved wlth a shlft towards a model of participatory grant making, that sees the Town Trust working with and alongside charities to Cowcreate projects. We have used en impact asse55ment model in a proportionate way with all our grantees, and refining our commitment to this will be a key focus of our Grant Making Strategy to 2025. In 2023 we commissioned Bayes Business School (Centre for Charity Effectivenes5) to review and measure the impact of the Town Trust's grant giving on the Strarford-upon-Avon community. The findings of the review were very positlve and the r6commendations from Bayes have been developed inlo an action plan for delivery over the next two years. Listening to the community and our members is an active part of the Town Trust's work. By making ourselves open to new ideas, by asking questions and building nelworks we have started to understand what really matters to people in relation to the place where they live. This led to the formation of our Community Engagement and Place Making Strategles. The progress of our key aims in 2023, year three of our Strategic Plan perlod can be summarised below.. Alm To restore gross income to 2019 levels To develop a property strategy with a more focused approach Pro r886 2023 Income in 2023 was £0.1m greater than 2019. Commercial voids in 2023 were well below th8 n81ional aver8ge of1 Oe/o. Arrears were well managed and 3 town centre properties were sold at a profit, to shift the investment ortfolio wei htin awa from bricks and mortar. In addition to regular communication wlth members a $8ries of events wer8 held in 2023 Mernbers, Dog Walk and talk at Rowley Fields. Two ses8ions at th8 Fred Winter Centre to explain what happens there and the people they support. A Dawn Chorus Walk at Rowley F181ds led by Warwickshlre Wildlife Trust. Several volunteer hands on ecology sessions at stratford Upon Avon LNR. Christmas Carol concert in th8 Guild Chapel. Our 2023 AGM was in person at the Play House. Our Chief Executive Chairs the Stratford Town Strate ic Partnershi The biodiversity net gain agreement for Rowley Fields was completed in December. The River5idg project was complel9d and Stratford upon Avon Local Nature Reservo was designated in September. Ten Re air Cafés wer8 held contributin 15.8 tonnes to C8rbon savin The pilot of our first participatory grant making award continued with a grant of £0.1 m helping to create a new charity Stratford Youth Collective made up of five local oun eo le's charities. The Town Trust received two awards from the UK Shared Prosperfty Fund. One made a contribution to the renovation of the Old Grain Store and the other was towards conservation and community engagement. Further fundlng was gratefully received for the community hub from WRCC towards wami hub activities. and from the Migrant fund monie5 to support Hong Kong Communi Loneliness and Isolation Reduction. To engage In Conversations in order to act as a connector to share leaming and drive change An ongoing commitrnent to the environment and sustsinability To move to a model of participatory grant makin To develop additional income through extemal funding streams STRATFORD-UPON-AVON TOWN TRUST REPORT OF THE TRUSTEES Community Hub In May 2023 we moved our Community Hub from Foundation House to Venture House, at Avenue Farm Industrial Estate. Despite being a smaller building our Community Hub has continued to go from strength to strength at its new location. It is a place that enables a diverse range of individuals, groups, charities, artists, makers, and social enterprises to work together in an inclusive, open and welcoming environment. providing an affordable, accessible space for members of the local community. The net cost of operating the Community Hub in 2023 was £116k (2022.. £116k) which included the cost of relocating to and some internal fit out at the new hub. Venture House is a short to medium term location for our hub and we have agreement with the landlord that we can operate there until March 2027. We contlnue to explore options for a permanenl Community Hub. Foundation House was home to 14 groups who each had an allocated space, unfortunately as Venture House is much smaller, we were unable to offer space to any of these groups in our new location. With the exception of one group, all have gone on to find alternative premises and the Town Trust supported each of them with a contribution towards their removal, relocation and storage expenses. The benefit in kind cost of the space which each group occupied for the period January to May 2023 is summarised in the table below.. Name of organisation Army Cadets Little Bird Baby Bank NHS Diabetic Eye screening Escape Arts Heart of England Woodturners Safeline Second Thoughts Drama Group Shakespeare Lions Strattord District Radio Society Strafford Men's Shed Stratford Youth Theatre WCAVA Warwickshlre Reminiscence Action Project Welcombe Radio Total benefit in klnd 'N¢t of contributlons to runnlng Gosts or Ilcensfje fo08 The benefit in kind figure was calculated based on the per metre square cost of running Foundation House. Foundation House had six meeting rooms that could be hired by other groups, businesses, and individuals for a variety of uses and activities. Hlrers included local drama and music groups, adult community learning courses first aid courses, chess club, Warwickshire Pride, youth groups, baby and toddler groups, counselling and sensory sessions, Polish Saturday School, Stratford Calling. Heart of England Mencap and a rock choir. In contrast Venture House has only three spaces which can be hired but has proved popular with many including WCC Adult Community Learning, Citlzens Advice South Warwickshire, U3A groups, Time4Hope and Home-start. The monthly community café programme that was a feature at Foundation House has become a weekly event at our new location. It continues to be well attended, providing great opportunities for local community networking, support and signposting. In October, the Communlty Hub participated in StratFord-upon-Avon's Fun Palace - a national event where communities have an active role in culture, where everyone's brilliance is celebrated. We created a Stratford Fun Palace trail around the town centre in partnership with the Royal Shakespeare Company, Shakespeare Birthplace Trust, Warwickshire Libraries. In all over 600 people enjoyed the Fun Palace event with 250 engaging with the Town Trust from our base at the Crowne Plaza hotel. Benefit in klnd value £. 642 1,029 2,320 207 2,812 1,808 1.108 945 2,796 788 913 3,054 919 19,341 STRATFORD-UPON-AVON TOWN TRUST REPORT OF THE TRUSTEES Community Hub (Continued) StratFord's Repair Café in partnership with local group. Net Zero moved location from Foundation House to the Methodist Church and continued as a monthly event. The monthly Repair Café is supported by 55 enthusiastic and skilled volunteers who each bring their expertise in mending, repairing, and hosting. As well as the inevitable Sand fill and carbon savings this joyful community meet up welcomes a truly diverse group of people, providing a friendly welcome and a place to meet others. Our weekly Warm Hubs continued through the summer months providing a place of welcome in a relaxed setting. Wann Hub volunteers delivered a range of craft making activities alongside information on staying warm whilst saving energy and staying safe in the home. We were very grateful to receive a grant from Warwickshire Rural Community Council for ongoing cost of delivery. Gulld Chapol We are very grateful for the volunleers, loyalty and commitment to the Guild Chapel. We would like to thank them for the time they give to offer a warm and knowledgeable welcome to all our visitors. Together the volunteers have covered approximately 900 hours of guiding in the Chapel for 2023 welcoming 25,352 visitors from all over the world. They gave eleven talks to groups including the Worshipful Company of Glovers and welcomed five organ recitals, eleven choirs, I￿e1ve concerts and Iwo weddings. In March, as part of Shakespeare Week, we held a free schools, workshop at the Guild Chapel which was hosted by the Guild Chapel Volunteers and Orchestra of the Swan. On Shakespeare's Birthday volunteers led a historical reenactment with the Chapel home to Lady Clopton'5 household and there was an afternoon of medieval craft aclivities. During Heritage Open Days in September the Guild Chapel led lours for volunteers from Shakespeare Birthpla￿ Trust. Holy Trinity Church, Shakespeare School Rooms, Guild Chapel, and the library. The final event in the year was a sell out festive Christmas Carol Concert. In 2023 the Friends of the Guild Chapel held a number of concerts and organ recitals, and we are grateful for their continued support. During 2023 King Edward Vl School utili5ed the chapel for musical activities, as well as its usual school assemblies and service5. Grant Making Grant awards during 2023 were based on the Town Trust's funding priorilies, as detalled In the Grant Making Strategy. These were developed after consultation with the community with Ihe aim of maximising impact in one or more of the following: Mental Health- Men andlor Boys". We encouraged ideas from organisations working with men andlor boys and those who identify as fflale, around positive mental health and wellbeing. We identified through conversations with partners that there are added barriers to engaging and supporting men and boys. We hoped that by providing fundlng we could support them to narrow and overcome these barriers. Stronger Organlsatlons.. We understand that to build in new approaches thoughtFully and sustainably requires investment of time and money. Our funding could be used to explore and develop such areas a5 organi5ational capacity, skill-building, resilien￿, and succession planning etc. Greener Stratford.. Focusing on smaller. grassroot projects. we aspired lo support activities and ideas that educated and engaged the community, supporting both big and small changes to lifestyles and approaches that were focused on sustainability. Core costs: to enable beneficiary organisations to deliver fantastic projects without unnecessarily restrictive conditions. STRATFORD-UPON-AVON TOWN TRUST REPORT OF THE TRUSTEES Grant Making (Continued) Summary of Dlscretionary Grants awarded In 2023 (net of grants cancelled) Community Benefit Awarded Examples of Beneficiaries Safeline: sexual violence and its impact on males £42.779 Hardship funds for individuals: administered by CASW £15,000 Transfomiation in Action CIC.. Stratford Community Menopause Knowledge £1,500 Home-start South Warwickshire: Core and staff costs for Stratford town £27,005 Citizens Advice South Warwickshire: core funding and management support £89.403 Spring Housing Association: Centre funding £50,000 Heart of England MenGap: Core costs for dellvering day seThlces £29,000 Lifespace Trust.. core costs of support for mentoring £29,000 Welcome Here Stralford-Upon-Avon.' cooking sessions for local refugees & asylum seekers £1,500 Stepping Stones Stratford upon Avon.. Stepping Stones services £19,500 rime Out Group: Continuation funding £12,000 Refuge: Strafford Refuge core cost5 and hardship £33.000 You Can Flourish.. su ortin vulnerable irls in Strafford £10,138 To relieve need, hardshlp, dlstross, sickness, disabllity, old age and infirmity among beneficlarles 466,942 To provlde or support the provision of facllltles for education for beneficlarles, including the advancement of le8rnlng and knowled Grants to all town stale sch¢)ols. plus two out of town schools with a large number of Stratford-upon-Avon resident pupils £194,840 in total - 14 grants Stratford Youth Collective: Set up and running costs of new youth charity £100,000 2nd stratford Brownies: Blackwell Court 2023 £1,400 The Brakes Community Foundation CIO.. Brakes Vitality £1,500 Targeted Youth Suppor1= Gamlng & activities project £1.153 314,091 To provide or support facilities for recreatlon and other leisure-time oGcupatlon Play House.. community events support £100,000 Slratford upon Avon Rugby Football Club: Portable LED floodlights £1,500 Orchestra of the Swan: Café Muse £10,000 Hawks Foundation= Basketball U9 and U11 £1,500 Esca e Arts.. Core communi su Ort £35,955 Friends of St James Alveston.. new heating system £1,500 St Gregory's Roman Catholic Church: Parish open day £500 Hol Trini Church- Or an restoration costs £3,000 Stratford Timebank: core costs £13,040 Grants to Foundation House licensees lo assist with relocation £9.012 Funding to various community groups for Coronation parties £7,350 Stratford in Bloom: floral displays and planting £7,500 Stratford Christmas Lights Co: coronation display £5,000 and 40th anniversa Christmas Li hts dis £7,500 Stratford Climate Action: Big Weekend of Swifts £1,300 169,013 Chrlstlan rellglon 5.470 To support citizenship and community 22,552 To support civic pride 38.632 Other charitable ur oses 1,300 STRATFORD-UPON-AVON TOWN TRUST REPORT OF THE TRUSTEES Grant Maklng (Continued) Multiyear grants - grants awarded which cover multlple years. Spring Housing: £185,000 over 3 + years This project supports the Fred Wlnter Centre as a housing plus faclllty Year 1 was committed in 2020 £60,000 as a contribution to capital works and £25,000 towards Centre Manager's salary. Nothing was committed in 2021 as the construction project was delayed due to the pandemic. Year 2 £25,000 of costs towards Centre Manager's salary was committed in 2022. In 2023 £50,000 was committed towards Centre staff costs. Refuge: £90,000 over 3 years Thls project supports the Refugo Stratford-upon-Avon, for women and Ghildren who have experienced domestlc vloloncg. Year 1 was committed in 2022 £32,000, year 2 in 2023 - £33,000 to fund Refug8 residents who access affordable famlly centred recreational activities such as after school swimming lessons, baby and toddler groups. citlzen3 Advice South Warwickshire (CASW): £252,871 over 3 year8 This project supports CASWto provide a range of advice and guidance in respect of money and debt, housing, dlsabllity rights, benefits and claims. Year 1 was committed in 2022 - £120,937, year 2 was committed in 2023 - £89,403 to fund an operations manager and a part-time volunteer coordinator to focus on rebuilding a strong and dedicated volunteer team. Safellne: £156,668 over 3 years This project supports male Individuals who have suffered sexual violence. Year 1 was committed in 2023 - £42,779. Play House over 5 years (July 2021- June 2026) Thls project supports beneficiary events held at the Play House, the grant Is conditional on various KPIS bèing achleved whlch Include 40 unique beneficiary events (as defined by the agreement) being héld at the venue in each 12 month period July to June. Year 1 was committed in 2021- £75,000 (reduction due to Covid lockdowns), year 2 was committed in 2022 £125.000, year 3 was committed in 2023 £100,000. Non-Dlscretlonary Grant8 The King Edward Vl Grammar School Trustees (charity number 528769) received an entitlement of £727k (2022.. £586k) from the Guild Estate in accordan￿ with the Charity Commission Scheme dated 1 st October 2001. £55k (2022.. £49k) was paid towards the maintenance of the Almshouses by the Guild Estste. A stipend of £7k (2022: £7k) was paid to the Vicar of Holy Trinity Church by the College Estate. STRATFORD-UPON-AVON TOWN TRUST REPORT OF THE TRUSTEES FINANCIAL REVIEW (incorporating strategic review) OVERVIEW In 2023 total income for the Town Trust was £3.7m (2022.. £3.6m) the majority of which (98.30/0) {2022." 98.5 % ) was generated from its investments. The Town Trust is very fortunate to have such a legacy and to not have to undertake significant fundraising on a regular basis. Investment (both property and equity) management costs amounted to £0.9m meaning that 75.8 % (2022.. 600/0) of the total income was available to be spent on charitable purposes. enhancing the lives of the people of Stratford-upon-Avon. Inveslment management costs were higher in 2022 due to repairs relating to buildings where tenants had gone into administration. We are very aware that the cost of managing the investments must be monitored closely and spent carefully but also it is important that the investments are well managed ensuring security of income flow for future generations. £2.4m {2022: £2.2m) was spent on charitable expenditure of which £1.9m (2022: £1.7m) was given as grants of which £1.2m (2022: £1.Om) were discretionary, and the cost of operating Community Hub. For more detail see note g. INCOME Investment income, £3.65m, remains our main source being 98.3 % of the total income. Investment income has improved £0.15m year on year, driven by higher dividend income as the proceeds from the property sales have been reinvested in equity investments and property funds. Our investments produced a yield of 6.35 % (2022: 6.1 % ). The slight increase was due to an improvement in the performance of Ihe equity investments compared to last year. EXPENDITURE The majority, 75.5 % (2022.. 860/0), of the expenditure on raising funds, relates to the direct cost of managing the investment portFolio and in the main relate to managing and maintaining the property portfolio. The cost of raising funds was £0.9.m {2022: £1.4m). For more detail see note 8. CHARITABLE EXPENDITURE Durlng 2023 our charitable expenditure was £2.4m {2022: £2.2m) an 110/0 increase. The change was primarily driven by an increase in discretionary grants of£O.15m. Of the charitable expenditure 85.0 % (2022: 83.6 % ) was either grants or expenditure directly towards the funding of the Town Trust managed community facilities. OVERHEADS Considering the value of the Town Trust's assets and the range of its activities, our staffing levels are relatively small. We occupy premises owned by the College Estate and have the appropriate standards of technological and systems infrastructure. The Board continues to be acutely aware that our primary purpose is to deliver much needed financial and other support to the community and our discretionary grant beneficiaries. To that end we keep our overhead costs under regular review. During the year the allocation of support costs was reapportioned. to reflect the workloads and activities undertaken in the year. STRATFORD-UPON-AVON TOWN TRUST REPORT OF THE TRUSTEES Statement of flnancial activitles - summa 2023 £k 3.649.3 11.3 2022 £k 3,498.3 37.3 Investment income Donations & Le acies Charitable activities Other income Total income 49.7 12.7 3,550.4 Expenditure on raising funds Total net income 883.8 2,829.4 1.424.3 2,126.1 °A of total income available for charitable ur os•s 76.2% 59.9% Discretiona rants. Non-discretiona rants Other charitable activities" Total charitable activltles Net out oin l incomln r•source8 Includes costs of Community Hub Includes support costs 1,157.3 788.4 449.8 2,395.5 433.9 1.019.5 641.1 493.1 27.6 ** BALANCE SHEET At the end of 2023 the Town Trust had investments totalling £57.5m (excluding cash deposits). These are the investments from which we generate the majority of our income. Ofthese investments, 93.80/0 are defined as endowed assets, which means that if any of these assets are ever sold all proceeds must be reinvested and the resulting assets would also be defined as endowed. During the year, the investments increased in value by 2.60/0 (2022.. increased by 4.2 % There were no propety acquisitions and three disposals durlng the year. In March 2023 the Coach House pub was sold for £0.7m and it had a book value of £0.45m. The net proceeds were reinvested in the Charity Propety Fund. In June 2023 the Garrick Inn and the Windmill pub We￿ sold for £2.3m, they had a combined book value of £2.Om. The net proceeds were reinvested in a sterling liquidity fund. The performance of the Snvestment portfolios are continuously monitored, particularly the locally owned propety portfolio. At the end of the year the Town Trust had committed £0.6rn of grants to discretionary grant beneficiaries, to be paid within the next 12 months (2022: £0.6m). This amount is included in creditors. The total funds at the end of the year were £58.5m. of which £53.4m were endowed funds and £5.1m were unrestricted funds. Of these unrestricted funds £3.4m are available to fund future charitable activities. RESERVES POLICY The Board reviews the reseNes policy annually and considers it very important that the three charities can pay all their committed grants and have free reserves to cover ongoing administration costs for at least six months. Stratford-upon-Avon Town Trust Unrestricted reserves are held in the Town Trust to cover six months of administration costs (estimated at £0.3m), the balance being available to pay future grants. The level of this reserve is reviewed annually. In 2015 a designated reserve was set up to match the net book value of the Play House building. which is a tangiblefixed asset. The annual depreciation associated with this asset is charged to this designated reserve. In 2021 designated reserves were set up to fund the running costs of Community Hub, the Community Hub future proofing project and participatory grant making. The designated reserves at the end of 2023 are sumrnarised over the page. 10 STRATFORD-UPON-AVON TOWN TRUST REPORT OF THE TRUSTEES Desl nated funds 2023 £m 2022 £m Pla House buildin Communi Hub on oin costs Communit Hub future proofin Partici ato rant makin Total desi nated funds Guild Estate and College Estate The permanently endowed reserne in each of Guild Estste and College Estate will always be fully investment and cash backed. To recognise the small operational risk in both charities an unrestricted reSe￿e of at least £0.03m will be held in College Estate and £0.1m in Guild Estate. The level of reserves is reviewed annually. For more detail of the individual charities, reserves see note 20. INVESTMENT POLICY AND PERFORMANCE At the end of 2023 the Town Trust held investments of £57.5m (excluding cash deposits), an Increase of £1.8m compared with 2022. The Town Trust has two endowed investment portfoli05, which are held by the Guild Estate and the College Estate, and other investments, whiGh are held by the Town Trust and the College Estate. The objective of the investment policy is to create sufficient income and capital growth to enable the Town Trust to deliver its charitable objects consistently year on year. In the medium to long term the Town Trust aim5 to generate an average annual income yield of 4.40/0 and for the capital value of the portfolio to grow at least in line with inflation (CPI). The broad thrust of our investment policy in recent years has been to increase portfolio diversification and reduce our exposure to propety in Stratford-upon-Avon. The largel range set for both physical property and property fund investments is 500/0 - 70 %, at the end of December 2023 the proportion was 650k of which 57.1¥0 was physical property. The Board reviewed and updated the investment policy in September 2023. The policy'5 main objectives are: Short Term {less than three years) Objectlve The short-term investment objective is to ensure that the Town Trust has sufficient liquidity to enable it to fund its planned spending on good causes and meet lis overhead costs as they fall due. Medium to Long Term Objective The medium to long-tem) investment oblectlves, as measured over a 10-year rolling period, are to achieve a balanced return from the overall portfolio such that: for the combined portfolio of the three charities there is an expectation of net income yield being not less than 4.40k p.a. and that the Capital value grows at least in line with inflation (CPI). Net income is defined as gross income less all direct costs {i.e., fees. repair costs, legalladvisor fees). (4.4°A is the weighted average of th• yi•ld of property Investments (4.98%) plus the yield of the quoted Investments (3.2Yo)). Long Term Objective Endowment investments are expected to exist in perpetuity and should be managed to meet the charities, investment objeciives and ensure their sustainability. The Town Trust also has a responsible invesimenl policy. which guides the Board in environmentsl, social and governance issues when making investment decisions. The Trusts Capital and Income Act 2013 proposed that endowed charities may adopt a total return approach, without having to seek Charity Commission approval. A5 Such the Town Trust has considered this point in relation to its endowed investments but decided it was an approach it would not adopt at this time. The Town Trust does not have any social investments. all Guild Estate and the majority of College Estate investments are endowed. STRATFORD-UPON-AVON TOWN TRUST REPORT OF THE TRUSTEES INVESTMENT POLICY AND PERFORMANCE contlnued The endowed investments are split between physical propety, equity investments, property fund investments and cash equivalents. The non-endowed investments are held in equity or property funds. All investments held in equity or cash are readily realisable if required. Investment 2023 £m 2022 £m 2023 2022 Endowed: Ph sical Pro uit Funds Pro ert Funds uidit Funds Cash e uivalent Total endowed Investments ert 32.5 15.2 35.0 14.9 61.9 26.4 26.5 53.9 53.0 93.9 93.8 Non-Endowed: Ph sical Pro uit Funds Pro funds Total non-endowed invostments Total investments. 'Excludes cash deposits 57.5 56.5 100.0 100.0 Independently Managed Funds Perfonnance As at December 2023 the equity investments were held with Sarasin & Partners. and Cazenove Capital Management. The property funds were held with either the Charities Property Fund or Schroder UK Property Fund. The investment returns during the year are shown in the table below: Income Capltal Total Return Target Benchmark Town Trust 3.80/0 3.10/0 6.90/0 Guild Estate 5.5% College Estate 4.2¥0 4.90/0 7.70/0 5.8Q/o The benchmark for the Guild Estate and College Estate is the weighted average of the benchmark for the property funds (-1.40h), whith is based on AREF I MSCI All Balanced Funds Property Index and the benchmark for the Common Investments Funds (7.5%) (which is calculated based on.. ICE BofAML Sterling Corporate {7.5%}, ICE BofAML UK Gilts All Stocks {7.50/0), MSCI AC World ex UK {Local Currency) (GBP) {10 /0), MSCI AC World ex UK (Net Total Retum) (40Yo), MSCI All Balanced Property Funds- One Quarter Lagged150/0l, MSCI UK IMI (Net Return) GBP (20¥0), 20/0 per annum abovo SONIA (altemative assets) (1 OY.)). The b8nchmark for the Town Trust is the weighted average of the benchmark for the property funds {-1.4Q/ol, which is based on AREF I MSCI Al Balanced Funds Property Index and the benchmark for Sarasin investrnent fiJnds16.90/01.' ICE BofA 1-10 Year Stsrling CorporBle & Collateralbzed Index (7.5Y.}, ICE BofA 1-10 Year UK Gilt Index {8.75 % I, ICE BofA Steding Corporate & Collateralized Index (5.63 % ), ICE BofA UK Gilts All StrKks (5.630/y), MSCI AC World (Local Currency) {GBP} (7.5% ), MSCI All Balanced Prop8rty Funds- One Quarter Lagged {3.750/0l. MSCI All Countries Wodd Daily (Net Total Retum)1500hl, SONIA11.25Wo). 2% per annum above SONIA (altemative assets) {1 OV.). The und8rp8rfomiance of the actual total return for the Guild & College independent managed funds was due to a poor performance for the Schroder UK Property Fund in quarter 4 of 2023. 12 STRATFORD-UPON-AVON TOWN TRUST REPORT OF THE TRUSTEES Pmperty Investment Perfomianca The combined property portfolio Is valued at £32.8 m (2022: £35.3m). It is a regulatory requirement that a full valuation is performed every five years. The property agents, Colliers International Property Consultants Limited, perfomied a full valuation of properties as at 31 December 2020. The income yield during the year continued to be acceptable, however the capital retum failed to match the rate of inflation. Income Capital Total Return Target Benchmark Guild Estste 8.1% 8.1% -1.40 College Estate 0.0% 7.5V. 9.2¥0 The benchmark for the Guild Estate and College Estate Is the AREFIMSCI All Balanced Funds Property Index. The Group property portfolio had an average capital retum of 0.0% (2022: 0.70h). The rental yleld forthe combined portfollo was 8.1 Q/0 (2022: 7.6Yo), giving a total return of 8.1 Oh12022.. 8.3%). In 2023 the Town Trust's commerclal property portfolio In Stratford-upon-Avon continued lo cope with current economic challenges, the age and listed status of some properties and the change to retail shopping habit5. During the year we have had a small number of void properties and a good level of rent collection that were no worse than those experienced by other property portfolios of our magnitude and mix in the current economic climate. At the year-end there were void offices and three void retail units. Investment crlterla The Board has consldered carefully the requirements ofthe SORP and the Charlty Commlssion's revised guidance nole CC14 (issued in October 2011) and continue to conclude that they do not believe there is any listed investment adverse to the purpose of the charlty. Public Beneflt The Public Benefit of the Town Trust is primarily achieved through its granlwmaking that aims io benefit the "inhabitants of Stratford-upon-Avon° (as defined by the adminlstrative boundary of the parish). In order to measure where and how our grants demonstrate the most impact, applicants must outline how many local residents wlll benefit from their work and services, identifying beneficiaries with a town postcode. They are also required to outline how residents will benefil and how Ihe organis8tion will track and measure success and outcomes. This infomiation helps the Town Trust to understand how its discretlonary granl-making achieves a spread of benefit acr05S the community It serves. Through close links and a deep engagement with local volunlary sector groups and charities the Town Trust ensures that the net of benefit is cast as widely as possible, focusing on supporting organisab'ons able to demonstrate sustainable and long-lasting positive outcomes. In 2023 our Community Hub continued to be enjoyed, valued and recognised as a community deslinalion, providing an enormous benefit to so many. There were 14 groups who had been granted benefit in kind space, alongside many others who continued to utilise and enjoy the various meebng spaces on a regular basis. Our 107 allotment plots in Church Lane. Shottery. have continued as an active community of growers, sharing seeds, knowledge and produce during the last 12 months. We hold a waiting list for people interested in having an allotment and as larger plots become available, we divide them to enable more people to become involved. During 2023 the Town Trust conts'nued to support the operators of the Play House by providing the premises to Ihem rent free and with a grant of £0.1 m to support community events. The Board, in exercising it5 powers and dutles, has complied with its duty in Section 17 of the Charity Act 2011 to have due regard to the public benefit guidance published by the Charity Commisslon. 13 STRATFORD-UPON-AVON TOWN TRUST REPORT OF THE TRUSTEES Governance The Stratford-upon-Avon Town Trust (Town Trust) is the Corporate Trustee of the Guild Estate Endowment Charity (Guild Estate) and the College Estate Endowment Charity (College Estate) (referred to as 'the Group"). CHARITY REGISTRATION NUMBER COMPANY REGISTRATION NUMBER 1088521 04222949. registered in England & Wales The Town Trust is a charitable company limited by guarantee, incorporated on 24 May 2001, and was registered as a charity on 1 October 2001. The company was established under a Memorandum of Association. which established the objects and powers of the charitable company, and it is governed under its Articles of Associakn'on. The Town Trust is the corporate Trustee of the Guild Estate Endowment and the College Estate Endowment Charities (referred to as "the Group"). Although the Guild and College Estates are not companies under company law, the Charity Commission recognises that the three entities operate as a group and as such allow the statutory accounts to be prepared on 8 consolidation basis. The Town Trust can have a maximum of eleven Trustees. Five are elected by the Town Trust's members, three are nominated by Stratford-upon-Avon Town Council (but do not need to be Town Councillors) and three are co- opted, chosen by the other Trustees vla an open recruitment process. The Trustees serve an initial lerm of four years, after which they may put themselves forward for re-selection or reélection for another four-year term. Within the Town Trust, all Trustees (elected, nominated, and cO￿pted) fom the Board as equal members. There are three committees, the terms of reference of which are revlewed and updated as requlred, on an annual basls. The commitlees are Audit & Governance. Grants & Community Engagement. and Finance, Investmenl and Property. The Remuneration sub-commlltee sits within the Finance, Investment and Property Committee and is responsible for recommending any staff remuneration and benefit changes to the Board, which In tum Is responsible for the approval of such amendments. The Audit & Governance Committee also has nonoxecutive members, who ensure the Committee operate5 in an independent and impartial manner. The key responsibilities of the committees are shown in the table below. Committee Audit & Governance Res onsibilities Ensuring risk management, govemance and internal control systems are functioning effectively and report when attentlon Is requlred to Improve Inlerface with external auditors Review and oversight of constitution, regulations and non-operational decision making Review, adoption, and implementation of policies relating to legal and Chari Commission re ulations Approve and review grant awards Review and recommend the Communication Strategy and Grant Making Policy Recommend and oversee (lelive of Communication and Grants Plan Review of quarterly management accounts. annual budgets. 3 year rolling plans and the annual statutory accounts Review and updating of investment and reserve poliues Review and oversi ht of all ro & investment related matters Grants & Community Engagemenl Committee Finance, Investrnent and Property During the year there were seven Board Meetings, at which the Trustees agreed the broad strategy of the Town Trust and discussed the key areas of activity including granl giving, investmenl management, reserves. and risk management. The various committee minutes are reported at the subsequent Board meetings. The Town Trust is most appreciative of the time and effort which all its Trustees give so freely (for full details of Trustees see page 18). 14 STRATFORD-UPON-AVON TOWN TRUST REPORT OF THE TRUSTEES Governance (continued) A cOmp￿h8n$1ve induction process is provided to each Trustee on joining the Town Trust. All conflicts of interests are registered when a Truslee joins and updales are requested at every committee and Board meeting. In meetings where a conflict of interest arises the Trustee withdraws from that section of the meeting. All Trustees are volunteers, and no Truslee received any remuneration during the year. Details of Trustee expenses a￿ disclosed in note 21 and Trustee related paty transactions are disclosed in note 27. The Town Twst employs a number of staff, details of staff costs and numbers are disclosed in note 11. All new staff are inducted and trained when they join the Town Trust, so that they can perform their responsibilities efficiently and effectively within the guidelines set out by the Town Trust's policies, processes and procedures. There is a staff appraisal process and slaff training requirements are reviewed annually. The staff, who have delegated powers set by the Board, undertake Ihe administration for all three entities and as such a management charge is passed on to Guild Estate and College Estate to reflect this. Risk Management The Town Trust's risk policy was reviewed in autumn 2023. when the Town Trust assessed its risk appetite to be low to moderate. The Town Trust continually reviews its risks, which are maintained on a risk register. Risk is a standing agenda item for all Board and Committee Meetlngs. The rlsk pollcy explalns ihe process for identifying. assessing. mitigating and managlng the risks. Once the rlsk has been identsfied and categorised, il is then assessed based on the impact and the Ilkelihood of the risk occurring. Then, if possible, measures are taken lo miligale the risk. The policy requlres that the risks be monitored and assessed on a regular basis, and slates that this 15 done by reviewing and discussing the Risk Register. The whole process 15 monitored by the Audit & Governance Committee. The Board considers that there are no major risks facing the Group at the end of the year. Health and Safety The Town Trust continued its programme of Health and Safety site audils which is driven by keeping our people, the communily, properties, and environment safe. This strengthens the Town Trust's approach to keeping all our stsff and visitors safe. The Health and Safety Group meets quarterfy with representatives from across the organisation. A regular Inspection programme Is carried out by Town Trust staff alongside a suite of Risk Assessments. Health and Safety is a standing Board agenda item. Equity. Equality, Diversity and Incluslon The Town Trust shows respecl for all our employees and volunteers, valuing everyone's contribution, regardless of their age, gender, gender identity, sexual orientation, marital Status, civil partnership siatus, disabilily. nationality, race, religion, or belief. We are committed lo ensuring Ihat we are an inclusive and equal organisation. We believe that everyone should have the opportunity to reach their full potential, regardless of their background or circumstances. During the year the Town Trust developed a refreshed EEDI policy. The Town Trust has an action plan to embed EEDI in all aspects of its work, whlch is currently being rolled out. Safeguarding Whilst the Town Trust does not work directly with children, young people or vulnerable adults, we recognise many of the groups that we support do, particularly in our Community Hub. Therefore, we place considerable focus on safeguarding g0Veman￿ with mechanisms in place for regular review of policy and procedures including Designated Safeguarding Lead within the staff team and a Safeguarding Champion at Trustee level. GDPR Policy The Town Trust prides itself on a high standard of professional conduct to ensure GDPR compliance and has a Data Lead wilhin the staff team to ensure compliance is understood across the organisation. Whilst we do work with specialist consultants and organi58tions to advise and support our activities. we do not fundraise or canvas our members for fundraising on behalf of any other organisation. 15 STRATFORD-UPON-AVON TOWN TRUST REPORT OF THE TRUSTEES Openness, Transparency and Accountability The Town Trust works hard to manage overheads and maxirnise the funds flowing into the grant-making programme. The Chief Executive holds an open-door session each Friday morning to meet with members of the community or Town Trust members. In 2023 three events were held to bring people closer to the work of the Town Trust. In January, a members, dog walk was held at Rowley Fields. Followed in February by an event at the Fred Winter Centre entitled 'what's it all about?, where Jonalhan Ruane, Manager of the Fred Winter Centre explained how the businesses based at the Centre worked in partnership, there was also the opportunlty to have a guided tour of the building. In May, member of the Action for Nature team at WanNicksh1￿ Wildlife Trust led a guided dawn chorus walk al Rowley Fields. Grant Making Policy Infonnation about how to apply for grants is available on the Town Trust's website.. www.stratfordtowntrust.co.uk. Applications can be made to the Town Trust using the appropriate fomi. The Town Trust accepted grant applications from March to September in 2023 and continued to offer its Fast-Track granl scheme whereby organisations could apply for grants of up to £1,500 and receive a decision in ten working days. We continue to offer small value grants to individuals experlencing financial hardship- this scheme is administered on our behalf by Citizens Advice South Warwickshire. The organisalions in receipt of multi-year grants continue to report during the year. Once the flrsl year's grant Is awarded, subsequent years of the project are awarded in principle only. These grants are dependent upon the organisation meeting agreed targets and the Board approving the report and a budget for the coming year. Each grant is allocated lo one of our charitsble objects, but many awards meet two or more. Monitoring of all grants takes place through visits, grant utilisation reports and grant audits. Control Environment Internal Controls The Board is responsible for ensuring that there are effective and adequate risk managemenl and internal control systems in place to manage the strategic and operational risks which the Town Trust has and could be exposed to. Processes in place ￿gardIng risk management and internal controls include: Risk policy and process; Review of internal controls and processes by Audit & Govemance Commlttee and compllance advlsor where appropriate- All major programmes and projects are scrutlnlsed by senlor management and monitored through an appropriate Committee., The safeguarding of assets against unauthorised use or disposition; The maintenance of proper accounting records; The reliability of the financial information used within the Town Trust or for publication; and The safeguarding of personnel. The Town Trust has an organisational structure with defined lines of responsibility, job descriptions and delegated authority levels. Information Systems The Town Trust prepares quarterly management accounts which compare actual results with the budget. These are reviewed by both the Finance, Investment and Property Committee and the Board. Variances are followed up by management. Annually a three-year plan is produced which is dovetailed into the strategic plan with scenario overlays, where necessary. An annual budget is produced, which is compared with the three-year plan and the expected out-turn by the Finance, Investrnent and Propety Committee and then approved by the Board. Cash forecasts are prepared monthly to aid invesiment decisions and efficient cash management. 16 STRATFORD-UPON-AVON TOWN TRUST REPORT OF THE TRUSTEES Informatlon Systems (contlnued) The Board has examined the effectiveness of these key procedures during the year. This is achieved primarily through the review of the reports from management and external audit, reviews of the quarterfy and annual financial statements and reviews of the major risks facing the Town Trust. The Board has reviewed the effectiveness of the Town Trust's system of intemal financial controls that require disdosure in the financial statements and belleves Ihem to be adequate. The Town Trust has outsourced its IT contract, thus ensuring that it has the best cyber security and backup processes to protect the Town Trust's network and data. Our Staff and Volunteers None of the Town Trust's work would be posslble without the commitment and hard work of our staff, volunteers, and supporters. The Town Trust Is most grateful to all of them for thelr continued support and hard work. In December 2023 the Town Trust had 16 pald members of staff (12.9 FTEI. Their wealth of experience, skills and commitment has enabled the Town Trust to deliver another year of grants and investment management. It Is important that the Town Trusl conbnues to attract. recruit and retain talented and commilted individua15. The Board is responsible for the approval of the annual remuneration review. which is recommended by the Remuneration Subwcommitlee. The Town Trust's employment policies follow best praclice. It confirms its commitment to equality of opportunlty in all areas of employment. All employees are treated in a fair and equal manner and in accordance with the law regardless of gender, marltal status, race, religion or belief, age. disability, or sexual orientation. The Town Trust's volunteers are also key to our success. In 2023 as well as our long-standing team of volunteers at the Guild Chapel, who are crucial to unlocking ils hidden secrets, we recruited more volunteers to run the monthly Repair Café and a team of volunteers who assist with the ecology and habitat management at Rowley Fields and Lench Meadows. The Repair Café is run in partnership with Net Zero. We also have a number of volunteers who deliver the weekly warm hub at the Community Hub. rim Bailey Chair of Board 22 May 2024 17 STRATFORD-UPON-AVON TOWN TRUST OFFICERS AND ADVISORS TRUSTEE BOARD Tim Bailey (Deputy Chair of Board until 1 November 2023 & Chair of Board from 1 November 2023) Gill Cleeve Liz Coles Marion Homer Tony Jackson {Chair of Board until 1 November 2023) Simon Littlejohns (Chair of Finance Investment & Property Committee from 1 February 2023) Henry Lu Michael Rolfe Jonathan Smith Clive Snowdon (Chair of Finance Investment & Property Committee to 31January 2023) (retired 31 January 2023) Josie Stevens (Chair of Grants & Community Engagement Committee to 22 November 2023 & Deputy Chair of Board from 1 November 2023) Mark Tailby (appointed 1 February 2023) (Chair of Grants & Community Engagement Committee from 22 November 2023) NON-EXECUTIVE AUDIT & GOVERNANCE COMmI￿EE MEMBERS Sundash Jassi Chair from 1 January 2023 to 31 December 2023. Deputy Chair from 1 January 2024 Mark Tailby resigned 31 January 2023, Deputy Chair from 1 January 2023 to 31 January 2023 David Lane appointed 12 June 2023, Deputy Chair lo 31 December 2023. Chair from 1 January 2024 CHIEF EXECUTIVE Sara Aspl8y SENIOR Sara Aspley. Rebecca Hampson, MANAGEMENT James McHugh, Paul Fitzpatrick. TEAM Francas Nibb8, Lynn Perf(in8, AUDITORS Saffery LLP st John'8 Court Easton Street High Wycomb8 HP11 1JX PROPERTY MANAGER Colliers Intemation81 Property Consultants Limited 191h Floor 103 Colmore Row Bimiingham B3 3AG INVESTMENT MANAGERS Cazenove Capital (part of Schroders & Co Limited) 1 London Wall Place London EC2Y SAU Schroders & Co Limited 1 London Wall Place London EC2Y SAU Sarasln & Parlners Juxon Hou8e 100 St Paul's Churchyard London EC4M 8BU Charltles Propety Fund Cord8a Savills 33 Margaret st￿et London W19 OJD SOLICITORS Robart Lunn & Lowkh LLP 2 Sheep Street Strafford-upon-Avon CV37 6EJ BANKERS Barclays Bank pl¢ Market Cross Stratford-Upon-Avon Warwickshir8 CV37 6AP Mills & Reeve 78-84 Colmore Row Bimiingham B3 2AB Stratford-upon-Avon Town Trust is a private company limited by guarantee (company number 04222949) incorporated in England and Walas. It is also a registered charity (charity number 1088521). The registered office is at 14 Roiher Street, StratFord-upon-Avon, CV37 6LU. 18 STRATFORD-UPON-AVON TOWN TRUST STATEMENT OF TRUSTEES, RESPONSIBILITIES The Trustees (who are also Directors of StRtford-upon-Avon Town Trust for the purposes of company law) are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and Uniled Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requI￿S the Trustees to prepare financlal ststements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparlng these financial statements. the Trustees are required to: select suitable accounting policies and then apply them consistently. observe the methods and principles in the Charities SORP (FRS 102). make judgements and estimates that are reasonable and prudent. stale whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements- and prepare the financial slatements on the going concern basis unless it is Inappropriate to presume that the charity will continue In business. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy al any tlme the financlal position of the charitable company and enable them to ensure that the financial statements comply with the Companles Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far a5 the Trustees are aware: there15 no relevant audit Infomiatlon of which the charitable company's auditor is unaware; and the Trustees have taken all steps that they ought to have taken lo make themselves aware of any relevant audit Information and to establish Ihal the audilor is aware of that information. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charilable company's website. Legislation in the United Kingdom govemlng the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 19 STRATFORD-UPON-AVON TOWN TRUST INDEPENDENT AUDITORS, REPORT TO THE MEMBERS Oplnlon We have audited the financial statements of Stratford-upon-Avon Town Trust (the 'parent charitable company,) and its subsidlaries {the 'group') for the year ended 31 December 2023 which comprise statemenl of financial activities, Group and Charity Balance Sheet, cash flow statement and notes to the financial slatements, including significant accountlng policies. The financial reporting framework that has been applied in theirpreparation is applicable lawand United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of I￿land (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: give a true and fair view of the state of the affairs of the group and the parent charitable company as at 31 December 2023 and of the group's incoming resources and application of resources. including its income and expenditure, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepa￿d in accordance with the requirements of the Companies Act 2006. Ba818 for oplnlon We conducted our audit in accordance with International Standards on Audltlng (UK} (ISAS (UK)) and appllceble law. Our responsibililies under those standards are further described In the Audltor's responsibllitles for the audit of the financial statement5 section of our report. We are independent of the group and parenl charitsble company in accordance with the ethical requlrements that are relevant to our audit of the financial statements in the UK, including the FRC'S Elhical Standard. and we have fulfilled our other ethical responsibilities in accordance wlth these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our oplnion. Conclusions relatin9 to going concern In auditing the financial statements, we have concluded that the truslees, use of the going concem ba515 of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfomied, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group or the parent charitable company's ability to continue as a going concern for a period of at least ￿e1ve months from when the financial statements are authorised for Issue. Our responslbililies and the responsibllities of the trustees wlth respect to going concem are described in the relevant sections of this report. Other Informatlon The other infomation comprises the infomiation included In the annual report, other than the financial statements and our auditor's report thereon. The twstees are responsible for the other information. Our opinion on the financial statements does not cover the other infomiation and, except to the extent otherwise explicitly staled in our report. we do not express any form of assurance conclusion thereon. Our responsibility is to read the other infomation and, in dolng so, conslder whether the other Informatlon Is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inGonsi5tencies or apparent material missiatemenls, we are required to delermine whether thi5 gives rise to a material misstatement in ihe financial statements themselves. If. based on the work we have performed. we conclude that there is a material misstatement of this other infomiation,. we are required lo report that fact. We have nothing to report in this regard. Other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: ihe information given in the Trustees, Annual Report which includes the Directors, Report for the financial year for which the financial statements are prepared is consistent with the financial ststements; and the Trustees, Annual Report which includes the Directors, Report has been prepared in accordance with applicable legal requirements. 20 STRATFORD-UPON-AVON TOWN TRUST INDEPENDENT AUDITORS, REPORT TO THE MEMBERS Matters on whlch we are requlred to report by exception In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audlt, we have not identified material misstatements in the Trustees, Annual Report. We have nothing to report in respect of the folloviing matters where the Companies Act 2006 require us to report to you if, in our opinion: adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or the parent charitable company financial statements are not in agreement with the accounting records and retums; or certain disclosures of trustees, remuneration specified by law are not made", or we have not received all the infomiation and explanations we require for our audit. Responsibilities of trusteos As explained more fully In the Statement of Trustees, Responsibilities set out on page 19. the truslees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparallon of the financial 5tstements that are free from material misstatement, whether due to fraud or error. In preparing the financial statemenls, the trustees are responsible for assessing the group and the parent charltable company's ability to continue as a going concern, disclosing. as applicable, matters related to going concern and using the going concern basls of accounting unless the trustees either intend to liquldate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so. Audltor's responslbllrtles for the audit of the financial statements We have been appointed as auditors under the Companies Act 2006 and report in accordance wlth regulations made under that Act. Our objectives are to obtain reasonable assurance about whether the group and parent financial statements a5 a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level ofassurance, but is not a guarantee that an audit conducted in accordance wilh ISAS (UK) will always detect a material misstalemenl when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregale, they could reasonably be expected to influence the economic decisions of users taken on the basls of these financial ststements. Irregularities, Includlng fraud, are instances of non-compliance with laws and regulations. We design procedures In Ilne with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below. Identlfylng and assesslng rlsks related to Irregularities: We assessed the susceptibility of the group and parent charitable company's financial statements to material misstatement and how fraud might occur. including through discussions with the trustee5, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opporlunities for fraudulent manipulation of the financial statements. We identified 18ws and regulation5 that are of significance in the conlexl of the group and parent charitable company by discussions with trustees and updats-ng our understanding of the sector in which the group and parent charilable company operate. Laws and regulations of direct significance in the context of the group and parent charitable company include The Companies Act 2006 and guidance issued by the Charity CoTnmi5sion for England and Wales. Audit response to risks identsfied- We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the parent charitable company's records of breaches of law5 and regulations, minutes of meetings and correspondence with relevant authoritie5 to identify potential material misstatements arising. We discussed the parent charitable company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance. 21 STRATFORD-UPON-AVON TOWN TRUST INDEPENDENT AUDITORS, REPORT TO THE MEMBERS During the planning meeting with the audit team, th8 engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations orfraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of joumal entries and identifying any significant transactions that were unusual or outside th8 normal course of business. We assessed whetherjudgements made in making accounling estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner's review included ensuring that the team had approached their work with appropriate professional sceplicism and thus the capacity to identify non-compllance with laws and regulations and fraud. There are inherent limitations in the audlt procedures described above and the further removed non-compliance with lav and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also. the risk of not detecting a material misstatement due to fraud is higher than Ihe risk of not delecling one results'ng from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations. or through collusion. A further description of our responsibilities is available on the Financial Reporting Council's website at: www.frc.or .uklauditorsres onsibilil es. This description forms part of our auditor's report. Use of our report This report is made solely to the parent charitable company's members, as a body, In accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the parent charitable company'5 mernbers those matters we are required lo state lo them in an auditorfs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responslbility to anyone other than the parent charitable company and the parent charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Andrew Watkinson (Senior Statutory Audilor) for and on behalf of Saffery LLP Chartered Accountants St Johns Court Easton Street High Wycombe HP111JX Statutory Auditors Date.. Iq Is12 Saffery LLP Is ellglble to act as an auditor In terms of section 1212 of the Companies Act 2006 22 STRATFORD-UPON-AVON TOWN TRUST CONSOUDATED GROUP STATEMENT OF FINANCIAL ACTIVITIES, incorporating an Income and expenditure account for the year ended 31 December 2023 Unrestrlcted lunds Pernianent endowment funds 2023 Total funts Unrestrictgd funds Permanent ondovfflignt funds 2022 Total funds Note 2023 2023 2022 Income from: Donations and legacies. Investment income Charitable Activlties Other income 11,325 3,649,333 2,859 49,691 11,325 37,330 3,649,333 3,498,320 2,859 2,068 49,691 12,652 37,330 3,498,320 2,068 12.652 Total Income 3,713,208 3,713,208 3,550,370 3.550,370 Expendlture on: Raislng funds Charitable activitl8S- 883,756 2,395.571 883.756 1.424,262 2,395,571 2,153,662 1,424.262 2,153,662 Total expendlture 3,279,327 3,279,327 3,577,924 3,577,924 Net (losses) I galn8 on Investments 15118 40,264 473,641 513,805 1438,110) (2,008,786} 12,446,896) Nat Income and expendlturo 474,145 473.541 947,686 {465,664) 12,008,786) 12.474,450) Other recognisod gains and losses Actuarial g8ins on defined benefit pension schemes 24 286,000 286,000 Net movement In funds 474,145 473.541 947,688 {179,6841 {2,008,786) (2,188,450) R•conclllatlon of lund8 Totsl funds brought forward 18 4,620,408 52,947,849 57,568,257 4,800,072 54,956,635 59,756,707 Total fund8 carrled forward 18 5,094,553 53,421,390 58,515,943 4,620,408 52,947.849 57,568,257 The statement of financial activities Includes all galng and1088es In the year. All Incomlng resources and resources exponded dorive from continuing activltle8. The notes on pages 28 to 46 form part of these financial statements. Includes restricted funds income of £nil received from The Pilgrim Trust (2022: £20,000) recelved from The National Lottery Fund and the National Lottery Heritage Fund Includes restricted fijnds cost of £nil (2022: £20.000) funded by the atjove grants 23 STRATFORD-UPON-AVON TOWN TRUST TRUST STATEMENT OF FINANCIAL ACTIVITIES, incorporating an income and expenditurè account for the year ended 31 December 2023 Total Funds 2023 Total Funds 2022 Notés Income from: Donations and legacies Investment income Charitable activities Other 1,856,667 127,761 200 222,241 1,516,704 124,414 180 204,671 Total income 2.206.869 1,845,969 Expendlture on: Raising funds Charitable activities 264,361 1,565,859 264,155 1,409,694 Total expenditure 1.830.220 1,673,849 Gains l (losses) on investment assets 15 84.362 (375,230) Net Income and expendlture 461,011 {203,110) Other recognised gains Actuarial gains on defined benefit pension schemes 24 286,000 Net movoment in funds 461,011 82.890 Reconclllatlon of funds Total funds brought forward 4,173,805 4,090,915 Total funds carried forward 20 4,634,816 4,173.805 The statement of financial activities includes all gains and losses in the year. All incoming ￿$oU￿88 and resources expended derive from Continuing activities. All fvnds are unrgstricted. The notes on pages 28 to 46 fomi part of these financial statements. 24 STRATFORD-UPON-AVON TOWN TRUST BALANCE SHEETS As at 31 December 2023 Notes Group Town Trust 2023 2022 2023 2022 Fixed assets Tangible fixed assets Investments 14 15 1.533,987 57,879,856 1.580,673 56,924,126 1,533,987 2,553,106 1,580,673 2,668,743 59,413,843 58,504,799 4.087.093 4,249,416 Current assets Debtors Cash at bank and in hand 16 976,975 1,727,159 477,225 2,111,774 479,548 754,980 141,059 562,849 2,704,134 2,588,999 1,234.528 703,908 Current liabilities Creditors: amounts falling due within one year 17 (3,602,034) (3.525.541) (686,805) (779,519) Net current (liabiliti•s) l asset8 (897,900) (938,542) 547,723 (75,611 > Net assets 58,515,943 57,568,257 4,634.816 4,173,805 Funds Capital funds Endowment Funds" Income funds Unrestricted funds General fund Designated fund Other charitable funds (College & Guild) 18 53,421,390 52,947,849 20 2.953.372 1,681.444 2,655,072 1.518,733 2,953,372 1,681,444 2,655,072 1,518,733 459,737 446,603 Total fund8 20 58,515,943 57,568.257 4,634,816 4.173,805 'Includes revaluation reserves £34.326,971 {2022: £33,853,430) The financial statements on pages 23 to 46 were approved by the Trust88s and authorised for issue on 22 May 2024, The notes on pages 28 to 46 fomi part of these financial statements. Tim Bailey, Chair Simon Liiuejohns, Chair of Finance, Investsnent & Propety Committee Reglstered company number 04222949 25 STRATFORD-UPON-AVON TOWN TRUST CONSOLIDATED GROUP STATEMENT OF CASH FLOWS For the year anded 31 December 2023 2023 Total funds 2022 Total funds Cash flows from operating activities: Net cash used in operating activities Cash flows from investing activities: Dividends, intsrest and rents from investments Purchase of property, plant and equipmenl Proceeds from sale of investments Purchase of investments Net cash pmvlded by investing actfvltles 3 $90 579 3,649,333 (1.444) 2,974,282 3 447 855 3,174.316 3,510,972 (982) 487,777 1383 000 2,614,767 Cash flows from flnanclng actlvltle8: Repayment of borrowings Net cash used by flnanGlng x¢lvltl•$ Change In cash and cash equivalents In the reporting perfod Cash and cash equivalents at 31 December 2022 Cash and cash oquivalents at 31 December 2023 (416,263) 2 227 618 {497,788) 2 725 406 2023 Total funds 2022 Tolal funds Reconclllatlon of net Income to net cash flow from operallng actlvltles N81 income /(8xpenditure) for the reporting penod (as per the slatement of Inancial activities) AdJu8tmonts for: Depreciation (Gains) I losses on investsnents Dividends. interest, and rent from investments (Decrease) l increase in debtors Increase in creditors Not cash used In oparntlng activltie$ 947,686 (2,188.450) 48,130 (513,805) 13,649,333) (499,7501 50,021 2.446,896 13,510,972) 12.955 3 590 579 2023 Total funds 2022 Total fund$ Analysls of cash and rAsh equlvalents Cash in hand Cash awalting investment. Total cash and cash equivalents ' £74,621 (2022.. £710,841) of cash awaltlng investment is unavailable for general eX￿ndItUre as it is an endow•d asset. 1,727,159 2,111,774 115844 Analysls of thange In net debt At 1 January 2023 At 31 Decembor 2023 Cashflow Cash and equlvalents Cash Cash awaiting deposit 2,111,774 115,844 (384,615) (31,648) 1.727.159 84,196 Total 2,227.618 1416.263) 1,811,355 26 STRATFORD-UPON-AVON TOWN TRUST TRUST STATEMENT OF CASH FLOWS For the year ended 31 December 2023 2023 Total funds 2022 Total funds Cash flows from operating activities: Net cash (used in) /pmvided by operating activitles Cash flows from Investlng actlvttles: Dividends, interest and rents from investsments Purchase of property, plant and equipment Proceeds from sale of Investrnents Purchase of investments Net cash pn)vlded by Investsng activltles 356 426 687 350,002 {1,4441 204,571 329,085 1982) 4,979 800 000 466918 553 129 Cash Ilows from financlng actlvltles: Repayment of borrowings Net cash used In financing activiti8S Change In cash and cash equtvalenls in the reporting p8riod Cash and cash equivalents at 31 December 2022 Cash and cash equlvalents at 31 December 2023 196,703 1463.2311 2023 Total fvnd8 2022 Total funds Roconclllatlon of not Income l {expendlture} to net cash flow from operating activities Net Income for the ￿pOrting penod (as per th8 stat8ment of financial activities) Adjustments for: D8precialion (Gains) I losses on investments Dividends, interest, and rent from investments {Increase} I decrease in debtors 08crease in creditors Net Cash (used In) /provlded by operatlng actlvftles 461,011 82,890 48.128 {84,362) {350,002) (338,4891 50,020 375,230 1329,085) 72,575 247 943) 2023 Total funds 2022 Total fund8 Analysls of cash and cash equivalents Cash in hand Cash awaiting investment Total cash and cash equlvalents 754,980 562,849 Analysls of change in net dobt At 1 January 2023 At 31 December 2023 Cashflow Cash and equivalents Cash Cash awailing deposit 562.849 5.003 192,131 4,572 754,980 9,575 Total 567,852 196,703 764.555 27 STRATFORD-UPON-AVON TOWN TRUST NOTES ON FINANCIAL STATEMENTS For the year ended 31 December 2023 Statement of accountlng policies Stratford-upon-Avon Town Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is at 14 Rother Street, strattor(l-upon-Avon, CV37 6LU. Ba815 of preparatlon The financial statements have been prepared in accordance with the Financial Reporting Stsndard applicable in the UK (FRS102)- (Charities SORP {FRS 102)) and the Companies Act 2006. Stratford-upon-Avon Town Trust me6ts the dafinition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless othepwise stated in the relevant accounting policy note. The financial statements are prepared in Steding which is the functional currency. Monetary amounts in these financial statements are rounded to the nearest £. Thera ar8 no material uncertainties about the Town Trust's ability to continue as a going concern. On 4 July 2003 the Charity Commissioners issued a direction under Section 96(5) ofthe Chaiities Act 1993 that the following charitias shall be treated as fomiing p8rt of the charity called the Stratford-upon-Avon Town Trust for the purposes of Part Vll of the Chaiities Act 1993: Tha Guild Estate Endowment- registered number 217484. Th8 College Estate Endowment- ￿gIStered number 217485. As a consequence ofthe direction, Group financial Statements have been prepared. The Group financlal statements consolidate th088 of Stratford-upon-Avon Town Trust and its related charities, The College Estate Endowment and The Guild Estate Endowment under the merger accounting rules. Intr&group transactions are ellminaled on consolidation. Charltable Activities The Trustees consider that the Town Trust is a public benefft entity as it makes grants to beneficiaries wlthin the town of Stratforthupon-Avon. Costs of charitable activities include grants made and an apportionment of overhead and support Costs as shown in note 10. Income All incoming rèsources are recognised once the Town Trust has entitlement to the resources, it is probable that the resources will be received, and iheir amounl Can be measured with sufficient reliability, Property and investment income is recognised as il falls due. d) Expendlture Liabilities are recognised as resources expended as soon as th8r8 is a legal or constructlve obllgation commlttlng the Town Trust to the expenditure. All expenditure Is accounted for on an a¢crual$ basis and has been classified under headings that aggregate all costs related to th8 cat8gory. All costs aro allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resources. Costs relating to a particular activity are allocat8d directly- others are apportioned on an appropriate basis e.g., estimated usage. Grants payable Grants payable are grants payable to third parties in furtherance of the charitable objectives of the Town Trust. Grants are accounted for when either tha recipiant has a reasonable expectation that they will receive a grant, or the Trustees have agreed to pay the grant without condition. Provisions for grants are made when the intention lo maké a grant has ba8n communicated to the recipient but there is uncertainty about either the timing of the grant or th8 amount of grant payable. Irrecoverable VAT Irrecoverable VAT is charged against the category of resources expended forwhich it was incurred. Costs of generatlng funds These costs consist of investment and property management costs. h) Governance costs Govemance costs comprise all costs involving the public accountability of the charity and its compliance with regu18tion and good practice. These costs include costs related to statutory audit and legal fees together with an apportionment of overhead and support costs. 28 STRATFORD-UPON-AVON TOWN TRUST NOTES ON FINANCIAL STATEMENTS For the y•ar ended 31 December 2023 (continued) Statement of accounting policies (continued) IrNestments {1) Investments are induded in the accounts at the market value at the balance sheet date. (li) Gains and losses arising on disposal are charged to ihe relevant fund immediately on disposal. Gains and losses arising on revaluation are disclosed as unrealised. J) Tangible fixed assets and depreclatlon Tangible fixed assets are stated at cost less accumulated depreciatlon. The costs of minor additions or those cosling below £500 are not capitalised. Depreciation is provided at rates calculated to wrile off the cost, less estimated residual value of each asset over its expected useful life, as follows= Compuler equipment over 3 years Office equipment over 2 lo 4 years Play House plant and equipment over 5 years Play House refurbishment over 3 to 50 years Play House building over 50 years Bandsland over 50 years 8001h Anniversary Commemorative Fountain over 50 years Long leasehold property over life of lease or break option Herltage Asset Heritage assets are defined as tanglble or intangible assets with historlc, artlstlc, sclentlfic, technological, geophyslcal or environmental qualities, which are held principally for its contrlbution to knowledge and culture. The Gulld Chapel Is recognised as a heritage asset by the Gulld Estate as it Is a unique historic assel and is mainiained by the Guild Estate for its cultural benefit. In the opinion of the Trustees the cost of professionally valuing this asset to show a value in the financial statements ou￿elghS the benefits to the users of the financial statements, as such no value is assigned to the Chapel in the balance sheet. The Guild Estate was assigned the Guild Chapel in 1553, it is not expected that any other heritage assets will be acquired. Also the Guild Estate intends to remain the custodian of the Guild Chapel in perpetuity. Fund accounting (i) Permanent Endowment Funds relate to those assets which represent the permanent capital base of the charity and which may not be spent. (li) Restricted funds are funds which are to be used in accordance with specific restrlctlons Imposed by law. {111) Deslgnatsd fvnds are unrestricted funds earmarked by the Trustees for partlcular purposes. (Iv) Unrestricted funds are available for use al the dlscretlon of the Truslees in furtherance of the general objectives of the charity. Operating leases Operating leases are tharged to the Ststem8nt of Financial Activities as incurred. Retlrement beneflts Contributions are charged lo the Statement of Financial Activities so as to spread the cost of pensions over the employees, working lives with the company. The regular cost is attributed to the individual years using the projected unit method. Variations in cost which are identified as a result of actuarial valuations are amortised over the average expected remaining working lives of employees in proportion to their expected payroll costs. Defined benefit schemes are funded with the assets held separately from the group in separate trustee administered funds. Full actuarial valuations, by a professlonally qualified actuary, are obtained at least every three years, and updated to reflect current conditions at each balan￿ sheet date. The pension scheme assets are measured at fair value. The pension scheme liabilities are measured using the projected unit method and discounted at Ihe current rate of retum on a high quality corporate bond of equivalent term and currency. A pension scheme asset is recognised on the balan￿ sheet only to the extent that the surplus may be recovered by the reduced future conlributions or to Ihe extent that the Trustees have agreed a refund from the scheme at the balan￿ sheet dale. A pension scheme liability is recognised to the extent that Ihe group has a legal or constructive obligation to settle the liability. The defined benefit scheme was closed to new members as from May 2010. The Town Trust operates a defined contribution personal pension scheme for employees who joined after May 2010. 29 STRATFORD-UPON-AVON TOWN TRUST NOTES ON FINANCIAL STATEMENTS For the year •nded 31 December 2023 {continued) Statement of accounting policies (continued) Financial instruments The Town Trust has only financial assets and liabilities that would qualify as basic financial instruments. Basic financial assets, which include cash and debtors, are initially measured at transaction price including transaction costs and subsequently carried at amortised cost using the effective interest method. Financial assets classified as re￿1vable within one year are not amortised. Basic financial liabilities such as trade creditors. loans and finance leases are initially measured at transaction price unless the arrangement constitutes a financing transaction. where the debt instrument is measured at the present value of the future payments discounted at the markel rate of interest. Financial Ilabilits'es classified as payable within one year are not amortised. An equity instrument is any contract that evidences a residual interest in the assets of the Town Trust after deducting all of its liabilities. Crftlcal accountlng Judgements and key sources of estlmatlon uncortalnty In the appllcatlon of the Town Trust's accountlng pollcles, the Board is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associaled assumptions are based on historical experience and other factors that are considered lo be relevant. Actual resulis may differ from these estimates. The e5timales and underlying assumptions are reviewed on an ongoing basis. Revisions to accounbng estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and fulure periods. Connected charitios Stratford-upon-Avon Town Trust controls The Guild Estate Endowment (charity number.. 217484) and The College Estate Endowment (charity number: 217485) Charities. All three charities have common, parallel objects and activities and unity of administration. Set out below are the results of the Guild Esiate and College Estate.. Gulld Estate 2023 Guild Estate 2022 College Estate 2023 College Estate 2022 Total Assets Total Liabiliiles Total Funds 38,875,640 1799 384 38,147,322 1480 760 18.356,510 1551639 18,077.510 1349 620 2023 2022 Guild Estate Endowment Total incoming resources 2,599,005 2,453,104 Net incoming l (outgoing) resources 409,838 (1,014,938) College Estate Endowment Total incoming resources 1,020,079 1,005,024 Net incoming l (outgoing) resources 76,981 (1,256,402) 30 sTRATFOR￿uPON-Av0N TOWN TRUST NOTES ON FINANCIAL STATEMENTS For the year ended 31 December 2023 (continued) Group Total funds Total funds 2023 2022 Town Trust Total funds Total funds 2023 2022 Donations and legacies Annual glft from Guild Estate Annual gift from College Estate Donations Grants 1,235,986 617,434 2,767 500 979,386 535,097 2,221 10,825 500 17,330 20,000 11,325 37.330 1.856,667 1,516,704 Group Total funds Total funds 2023 2022 Town Trust Total fund8 Total funds 2023 2022 Investment Income Propety income Dividends receivable 2,670,929 978,404 2,757,244 741.076 30,536 97,225 44.158 80.256 3,649,333 3,498,320 127,761 124.414 Group Total funds Total funds 2023 2022 Town Trust Total funds Total funds 2023 2022 Income from Charltable Actlvlties Guild Chapel Bandstand 2,659 200 1,888 180 200 180 2,859 2.068 200 180 Group Total funds Total fund8 2023 2022 Town Trust Total funds Total funds 2023 2022 Other Income Interest receivable on cash & bank Miscellaneous income Services to Guild Estate Services to College Estate 49,506 185 12.652 21.260 185 121,344 79,452 4,900 123,003 76,768 49,691 12,652 222,241 204.671 31 STRATFORD-UPON-AVON TOWN TRUST NOTES ON FINANCIAL STATEMENTS For th• year •nd•d 31 D•c•mber 2023 (continued) Group Totsl funds Total funds 2023 2023 Town Trust Total funds Total funds 2023 2022 8 Expenditure on raising funds Investment Fund Managers, Fees Property expenses Support costs (note 10) Servlces to Guild Estate (note 10) Services to College Estate (note 10) 84,225 583.044 216.487 86.968 1.133.660 203,634 7,591 (734) 10.533 155,614 101,890 156,160 97,462 883,756 1,424,262 264,361 264,155 Group Total funds Total funds 2023 2022 Town Trust Total funds Total funds 2023 2022 9 Expenditure on charitable activities Grant Making Dlscretlonary Grants Community Hub Non-Dlscretlonary Grants King Edward Vl School Almshouses Maintenance Holy Trinity Church Grant Making Support Costs (note 10) 1,012,530 144,835 859.844 159.674 1,012,530 144.834 859,844 159,674 726.857 54.500 7,000 297,845 585,598 48,554 7,000 286,286 325,340 293,719 2,243,567 1,948,956 1,482,704 1,313,237 Play Hous• Dlrect venue costs Support costs (note 10) 37.288 24,550 37,288 17,974 37,288 24,581 37,288 17,983 61,838 55,262 61,869 55.271 Other activltles Bandstand 800th Anniversary Fountain Guild Chapel Support Costs (note 10) 2,536 7,429 41,135 39,066 1,664 25.977 74,209 49.594 2,537 7.429 1,664 25,977 11.320 13,545 90.166 151,444 21,286 41.186 Total 2,395.571 2,153.662 1.565.859 1,409.694 32 CD ffj Lr) a) * Ir) r ￿¢•￿00l￿aN rA) ￿ (o ¢rJ ro) o) (D LN ¢0￿￿￿t0￿)￿* rO)r vuiai ¢0￿)￿0 (3> ci (Q r In roo￿0 Or OE a) c)8Lu￿￿ILC￿￿ 10 It813E¥EZ ortr - *> CN ts> o ¢0 (r) eD O (N aj tr> Ln fts CD ¢0 c)n oco ¢0 ¢N ¢0 IN C¢ o cry ¢c? ¢0 J r IEE¥IIIS RE¥IS15 STRATFORD-UPON-AVON TOWN TRUST NOTES ON FINANCIAL STATEMENTS For the year ended 31 December 2023 (continued) 10 Allocation of support costs Group (conllnued Costs are allocated diredy where possible or on a staff time basis where applicable. Included wthin professional fees are: Group Town Trust 2023 2022 595 2023 650 2022 595 Saffery LLP non-audit fea 11 Employees and staff costs Group 2023 Number Group 2022 Number The average number of employees throughout th8 year, calculated on a role basis was: Strattord Town Twst Guild Estate Endowment 12.8 12.9 14.8 13.9 On a full-time equivalent basi8 the total head count was: 12.9 12.5 Group 2023 Group 2022 Town Trust 2023 Town Trust 2022 The cost of employing all staff was: Salaries and wages National Insurance Pensions- current seivice cost 397,995 25,292 91,784 365,856 31,879 91,897 378,806 24,175 90,753 352,845 31,081 91,455 515.071 489.632 493,734 475,381 In 2023 one member of staff was remunerated be￿een £80,001 and £90,000 and one member of staff was remunerated betsvean £60,001 and £70,000 {2022: one member of staff was remunerated between £80,001 and £90,000}. Total remuneration for the senior management team was £276,287 (2022: £269.025). 12 Roth•r Strnet Car Park Income and expenditure relating to the Rother Street Car Park is spllt 86.09% to Gulld and 13.910/0 to Co118g8 In accordance wilh land ownership arrang8m8nts. 13 Heritage Asset The Guild Chapel in Stratford-upon-Avon is not included in the balance sheet as it is regarded as a heritage asset. The Guild Chapel dates from around 1269 and was the main building of the Gulld of ihe Holy Cross. In 1553 it was gifled to tha Guild Estate, whereby the charity look over the responsibility of maintaining the Chapel for its purposes. In 1954 the Friends of the Guild Chapel, an organisation independent of the Town Trust, were set up. They fundraise towards the maintsnance of the fabric of the Chapel, including the organ, but are not part of the charity. The Chap81 15 used on a regular basis by King Edward Vl School for morning assembty, and the Friends of the Guild Chapel attend services on Holy Cross Day (14kn September), hold a Christrnas carol service and a summer service. Weekly Hoty Communion services are held at which anyone is welcome to worship. The Chapel is opened daily for the public to visit. In the opinion of the Trustees, the cost of professionally valuing thi5 asset to show a value in the financial statements ou￿elghS the benefits to the users of the financial statements. The building and contents are insured for £7.5m. 36 STRATFORD-UPON-AVON TOWN TRUST NOTES ON FINANCIAL STATEMENTS For the year ended 31 December 2023 (continued) Group Town Trust 2023 2022 2023 2022 15 Fixed asset investments Investment properties Quoted investments Short term deposits Cash awaiting investment 32,806,100 24,587,279 402,281 84.196 35,306,100 21,102,182 400,000 115,844 2,543,531 2,463,740 200,000 5,003 9,575 57,879.856 56,924.126 2,553.106 2,668,743 Inv•stm•nt prop•rtiO8: Market value at 1 January 2023 Net sale proceeds Gain on disposal Revaluation gains 35,306,100 (2,947.387) 447,387 35,456,100 (378,002) (21,998) 250,000 Market value at 31 December 2023 32,806,100 35.306.100 Cost or donated value at 31 December 2023 5,923,209 6,188,209 Quoted Investments: Market value at 1 January 2023 Additions at cost Sale proceeds Investment gains l (losses) 21,102,182 3,445,574 (26,895) 66,418 22,903,855 983,000 (109,775) (2,674,898) 2,463,740 2,243,949 600,000 (4,979) (375,230) (4,571) 84,362 Market value at 31 December 2023 24.587,279 21,102,182 2,543,531 2,463,740 Historical cost at 31 December 2023 18.810,988 16,092,018 2,220,800 2,225,372 In accordance with the Statement of Recommended Practice - Accounting and Reporting by Charities (SORP 2015> the investment properties were revalued at 31 De￿mber 2020 and shown at market value, the Trust believes this valuation to still be appropriate as there has been no significant change in the status of the properties or tenants nor the wider commercial propety market of Stratford Upon Avon. This valuation was carried out by Colliers International, Chartered Surveyors. who are qualified independent valuers, holding a recognised and relevant professional qualification, with recent experience in Stratford-upon-Avon. 38 STRATFORD-UPON-AVON TOWN TRUST NOTES ON FINANCIAL STATEMENTS 31 Dac•mber 2023 (continued) 15 Flxed asset Investments (continued) Group Town Trust 2023 2022 2023 2022 Galns l (losses) on unrestricted funds Quoted investments 40,264 (438,110) 84,362 (375,230) 16 Debtors: amounts falling due within one year Group Town Trust 2023 2022 2023 2022 Amounts falling due within one year: Rents Prepayments and accrued income Other debtors Amount due from Guild Estate Amount due from College Estate 270,539 672.608 33,828 277,767 171,238 28,220 3,579 45,340 12,126 48,664 405,066 25.563 76,569 3,700 976,975 477,225 479,548 141,059 Group Town Trust 2023 2022 2023 2022 17 Creditors: amounts falling due within one year Deferred income Trade creditors Grants payable (note 23) Accruals Other creditors Other taxation and soclal security Pension 1,660,323 130,786 745,593 908,288 1,425 151,832 3.787 1,234,422 85,727 721,074 1,325,008 10.289 145.432 3.589 11,666 39,654 545,774 60,432 1,425 24,067 3,787 174 16,589 630,885 ,568 10,290 27,424 3,589 3,602,034 3,525,541 686,805 779,519 Group 2023 2022 Induded wlthln accrual8 arn tho following faes payablo to tho auditor for. statLrtory audit 39 STRATFORD-UPON-AVON TOWN TRUST NOTES ON FINANCIAL STATEMENTS 31 D•c•mber 2023 (continued) 17 Creditors: amounts falling due within one year (continued) Deferred income represents lease premiums and rental income received in advance and grant funding that relate to afler the period end., represented by deferred income under one year £561,558, deferred income relatir¥J to one to five years £60,432 and the value relating to over fve years £1.038.333. Deferred Income reconclllatlon Group T¢)wn Trust 2022 2023 2022 2023 At 1 January 2023 Released during the year D8ferr8d in the current year 1,169,422 (492,440) 983,341 1,181,888 (499.047) 551,581 174 (174) 11,666 3,254 (3.254) 174 At 31 De￿rnber 2023 1,660,323 1,234,422 11,666 174 18 Summary of Fund Movements Fund Balanco8 31 December 2022 Income Expgndltur¢ Galns and Losses Fund Balance8 31 Decembgr 2023 Fund Name 2023 Unrestricted Fund8 4,620,408 3,713,208 (3,279,327) 40,264 5,094,553 Pemianent endowment fvnds 52,947,849 473,541 53,421,390 Total Funds 57.568,257 3,713,208 {3,279,327) 513,805 58,515,943 Fund Balances 31 December 2021 Fund Balances 31 December 2022 Fund Name 2022 Income Expendlture Galns and Losse8 Unrestricted Funds 4,800,072 3,550,370 (3.577,924) (152.110) 4,620,408 Permanent endowment funds 54,956,635 (2.008,786) 52.947,849 Total Funds 59,756.707 3.550,370 (3,577.924) (2,160,896) 57,568.257 Permanent endowment funds relate to those assets which represent the pemanerrt capitsl base of the group and which may not be spent. 40 NOTES ON FINANCIAL STATEMENTS 31 December 2023 (continued) 19 Analysis of group net assets between funds Unrestricted funds Endovmlent funds Totsl Total funds lunds 2023 2022 2023 2022 2023 2022 Fixed assets Fixed asset Investments Cuffent assets Current liabilities 1,533,987 3.947,182 1,580,673 3,904,638 1,533.987 57,879,856 1,580,673 56,924,126 53,932,674 53,01 g,488 2.704.134 2.588.999 (3,090.750) {3,453,902) 2,704,134 2.588,gg9 {71.639) (3,602,034) (3.525,541) 1511.2841 5.094,553 4,620,408 53,421,390 52.947,849 58.515,943 57.568,257 20 Analysis of group fvnds b•tw••n chariti08 2023 Guild Endowm•nt Colleg• Endowm•nt Town Trust Total Capltal funds Endowment funds 36,973,547 16.447,843 53,421,390 Unrestrlcted funds General funds Designated Funds. Other charitable funds 2,953,372 1.681,444 2,953,372 1,681,444 459.737 102,709 357,028 37,076,256 16,804,871 4,634.816 58,515,943 Analy818 of group funds b•twe8n charltl88 2022 Gulld Endowment College Endowm•nt Town Trust Tolal Capltal funds EndowTnent funds 36,563,709 16,384,140 52,947,849 Unrestrlctod funds General funds D8signaled Funds. other charltable funds 2.655,072 1,518.733 2,655,072 1,518,733 446.603 102,853 343,750 36,666,562 16,727,890 4,173,805 57,568,257 "Designated funds are classified over the page 41 STRATFORD-UPON-AVON TOWN TRUST NOTES ON FINANCIAL STATEMENTS 31 December 2023 (continued) 20 Analysis of group funds {continued) Designated funds 2023 2022 Play House building Community Hub ongoing costs Community Hub future proofing Participatory grant making 1.181.444 200,000 300,000 1,218,733 100,000 100,000 100,000 1,681,444 1,518,733 21 Trustee expenses (Group and Trust) Expenditure reimbursed to Trustees during the period amounted to £nil (2022.. £nil), 22 Commitments In accordance with Its constitution each year the College Estate is committed to pay an annual sum, which is currently £7k per annum, to the Vicar of Holy Trinity Church at Stratford-upon-Avon. In accordance with its constitution and High Court Order each year the Guild Estate is committed to paying 36 % of its clear annual income lo King Edward Vl School at Strafford-upon-Avon. The Guild Estate must also seek to apply 10 % of its clear annual income in furtherance of other educational purposes within the town of Stratford-upon-Avon. As a result of the scheme dated 1 October 2001 its residual income is now transferred to the Town Trust for distribution in line with its objectives. In accordance with its conslitution each year the Guild Estate has an on-going commitment to contribute to the Church Street Almshouses, (Municipal Charities) rLJnning costs in relation to general rates, water rates and sewerage charges, also funds for the respective yearly amounts (recommended by the National Association of Almshouses) to cover routine maintenance, payments to an extraordinary repair fund and a cyclical maintenance fund. The Town Trust has entered into a grant arrangement with the operators of Strafford Play House (Stratford Play House Limited) for a five-year period (1 July 2021 to 30 June 2026). The level of grants for the years 3-5 will be confirmed 6 months prior to the start of the new grant's year, for year 1 July 2024 to 30 June 2025 the commitment is £75,000. 23 Grant making A total of 155 (2022: 111) discretionary grants were awarded to beneficiaries during the year. of which 53 (2022.. 44) were hardship grants, to individuals, which amounted to £14,726 (2022.. £10,651). 42 STRATFORD-UPON-AVON TOWN TRUST NOTES ON FINANCIAL STATEMENTS 31 December 2023 (continued) 23 Grant making (contlnued) Although for accounting purposes, grants have each been allocated to one object. many awards do meet tsvo or even three objects. Dlscretlonary Grants £20,000 or greatsr Group & Town Trust 2023 Beneficlary Play Housè. Stratford Youth Collective Citizens Advice South WaThvickshire" Th8 Parenting Project Spring Housing Association. Stratftjrd upon Avon School Safeline The Myton Hospices Escape Arts Refuge. Heart of England Mencap Llfespace Trust Hom&Start South Warwickshire Purpose of grant Running costs & support of community events Set up and njnning costs Core funding & managemènt support Family wellbeing pathway delivery with familles Strafford Housing Plus Centre Schools grant Sexual violence and Its Impact on males Core costs for Stratford residents Core community support Strafford Refuge core costs & hardship Core costs for delivering day services Core costs support for mentorfng Holistic perinatal family support for Stratford town parents This beneficlary wa3 In receipt of a grant awarded to support a multi-year programme. 100,000 100,000 89,403 50,89) 50,000 45,347 42,779 36,000 35,955 33,000 29.000 29,000 27,005 Reconclllation of grants payable Group 2023 Group 2022 Commltrnents 310ecember 2022 Commitments made In the period and payable Grants paid during the period 721,074 1,945,720 (1,921,201 } 617,484 1,500,326 (1,396,736) Commitments 31 December 2023 745.593 721,074 It Is anticlpeled that all the commltted grants wlll b8 payabl8 durfro 2024. STRATFORD-UPON-AVON TOWN TRUST NOTES ON FINANCIAL STATEMENTS 31 December 2023 (continued) Pensions and similar obligatlon8 As at 31 December 2023. 2 (2022: 2) of the Town Trust's employees were Members of the Warwickshire County Council Pension Fund. The pensions cost is assessed every three years in accordance with the advi￿ of the Warwickshire County Council Pension Fund actuary. The assumptions and olher data that have the most significant effect on the determination of the contribution levels are as follows.. Latest actuarial valuation Actuarial method Investment returns per annum Pension increases per annum Salary increases per annum Market value of assets at date of last valuation 31 March 2022 Projected Unit credit method 1.7% 2.7% 3.7% £2.140.000 The following information is based upon a full actuarial valuation of the Warwickshire County Council Pension Fund at 31 March 2022 updated to 31 December 2023 by a qualified actuary. On 1 st April 2014 the Town Trust transferred four employees, who were members of the Warwickshire County Council Pension Scheme {Pension Scheme), to the employment of the ArtsHouse. The Penslon Scheme recognised the ArtsHouse as the new employer and admitted it as a fully funded Member of the Scheme as from 1st April 2014. Any deficit thal existed as at 1 st April 2014, which was attributable to the four employees, was assumed to remain with the Town Trust. As at 31 st March 2016 all four employees who transferred to the employment of the ArtsHouse. were no longer in the employment of the ArtsHouse. From a pension scheme perspeclive, they are defined as deferred pensioners. The Town Trust, with the agreement of the Warwickshire County Council Pension Scheme. has taken over the full ongoing deficit relating to these fomier ArtsHouse employees. From an FRS17 perspective this deficit was £67,000 as at March 2016. Financial assumptions 2023 2022 2021 Rate of CPI Rale of increase in salaries Rate of increase in pensions Discount rate for liabilities 10.10/0 2.9.10 1.9.10 The Town Trust's share of assets in the scheme were: 2023 £'ooo 2022 £'ooo Equities Bonds Property Cashlliquidity 1,148 720 360 22 1,181 518 332 41 Total 25 The actual return of the fund in 12 months to 31 December 2023 was 8.00/0. sTRATFOR[￿UpoN-Av0N TOWN TRUST NOTES ON FINANCIAL STATEMENTS 31 December 2023 (continued) Penslons and slmilar obllgatlons (continued) 2023 £'ooo 2022 £'ooo Market value of assets Liabilities 2,250 (1,678) 2,072 (1,516) Surplus" 572 556 "As per the Town Trust's accounting policies the surplus has not been recogni6ed on the balance sheet a5 the surplus is not recoverable. Analysls of amounts charged to the Statement of flnanclal actlvltles 2023 £'ooo 2022 £'ooo Current service cost 26 48 Operatlng charge (26) {48) Analysis of nat return on pension assats Expected return on pension scheme assets Interest on pension liabilities 99 (71) 41 (47) Net return 28 {6) Actuarfal galn8 and 1088es Asset gain l {loss) Liability {loss) I gain 58 (117) (160) 1,002 Net (loss) I gain (59) 842 2023 £'ooo 2022 £'ooo Movement in deficit during tha year Deficit at beginning of year Current Servi￿ cost Employer contributions Net returns on assets Actuarial gain 556 (26) 73 28 (59) (302) (48) 70 {6) 842 Surplus at end of year" 572 556 . As Per the Town Trust's accounting policies the surplus has not been recognised on the balance sheet as tha surplus Is not recoverable. 45 STRATFORD-UPON-AVON TOWN TRUST NOTES ON FINANCIAL STATEMENTS 31 December 2023 Icontinuedl 25 Golng Concern Given the strength of the balance sheet and availability and liquidity of unrestricted investments the Trustees belleve that It Is appropriate for the accounts to be prepared on a going concem basis. 26 Lease Commitments The future minimum lease receipts under non